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Pinnacle West Capital (PNW) Up 1.3% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Pinnacle West Capital Corporation (PNW - Free Report) . Shares have added about 1.3% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PNW due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Pinnacle West Q4 Earnings Top on New Retail Rates
Pinnacle West Capital Corporation reported adjusted earnings per share of 19 cents in the fourth quarter of 2017, surpassing the Zacks Consensus Estimate of 10 cents by 90%.
Despite an increase in retail rates and revenues, earnings were lower than the year-ago quarter due to higher operating expenses, effects of weather and a higher effective tax rate.
Total Revenues
In the quarter under review, total revenues of $759.7 million reflected year-over-year growth of 2.75%.
Operational Highlights
In 2017, higher operations and maintenance expenses adversely impacted earnings by 3 cents per share compared with the prior-year period. The increased expenses were largely due to higher employee benefit costs.
In 2017, effects of weather variations positively impacted earnings by 3 cents per share compared with 2016.
Operating income in 2017 increased 9.2% year over year to $934.4 million.
Full-year interest expenses were up 6.4% to $197.7 million from $185.8 million in 2016.
Guidance
Pinnacle West Capital increased 2018 earnings guidance in the range of $4.35 to $4.55 per share from $4.25 to $4.45 per share a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There has been one revision lower for the current quarter.
Pinnacle West Capital Corporation Price and Consensus
Currently, PNW has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Following the exact same course, the stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, PNW has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Pinnacle West Capital (PNW) Up 1.3% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Pinnacle West Capital Corporation (PNW - Free Report) . Shares have added about 1.3% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PNW due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Pinnacle West Q4 Earnings Top on New Retail Rates
Pinnacle West Capital Corporation reported adjusted earnings per share of 19 cents in the fourth quarter of 2017, surpassing the Zacks Consensus Estimate of 10 cents by 90%.
Despite an increase in retail rates and revenues, earnings were lower than the year-ago quarter due to higher operating expenses, effects of weather and a higher effective tax rate.
Total Revenues
In the quarter under review, total revenues of $759.7 million reflected year-over-year growth of 2.75%.
Operational Highlights
In 2017, higher operations and maintenance expenses adversely impacted earnings by 3 cents per share compared with the prior-year period. The increased expenses were largely due to higher employee benefit costs.
In 2017, effects of weather variations positively impacted earnings by 3 cents per share compared with 2016.
Operating income in 2017 increased 9.2% year over year to $934.4 million.
Full-year interest expenses were up 6.4% to $197.7 million from $185.8 million in 2016.
Guidance
Pinnacle West Capital increased 2018 earnings guidance in the range of $4.35 to $4.55 per share from $4.25 to $4.45 per share a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There has been one revision lower for the current quarter.
Pinnacle West Capital Corporation Price and Consensus
Pinnacle West Capital Corporation Price and Consensus | Pinnacle West Capital Corporation Quote
VGM Scores
Currently, PNW has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Following the exact same course, the stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, PNW has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.